Shipyards critical to San Diego economy

San Diego’s economy is a complex engine, powered by numerous industries that are critical to its ability to thrive. These industries are at their best when they work in tandem, complementing and augmenting each other’s strengths. Nowhere is this more apparent than with San Diego’s maritime industry and the U.S. Navy, which depends on local shipyards to help fulfill its mission.

Unfortunately, this invaluable segment of our economy, which helps keep our nation safe, is at risk. City of San Diego planners are recommending a plan for Barrio Logan that would change the community forever. The proposal — by adding more than 1,000 homes within 500 feet of the shipyards — would threaten jobs, create a parking crisis and wipe out half the available land for maritime businesses. The plan, known as Scenario 1, also would rezone more than 20 of the shipyards’ key vendors and suppliers, limiting opportunities for growth.

In many places, current zoning allows for industrial, commercial and residential uses on the same parcel. This is not acceptable and must be addressed. But the answer does not involve encroaching upon the shipyards by adding hundreds of new residential units that will be incompatible with current land uses. Constructing homes beyond the financial means of those who live in Barrio Logan is also not the answer. Without redevelopment to fund affordable housing, Scenario 1 will undoubtedly gentrify the community.

A 2012 San Diego Maritime Industry Report by the San Diego Workforce Partnership, San Diego Regional Economic Development Corporation and Maritime Alliance identified the “Blue Economy” as a critical part of the region’s economic base and “one of the unique regional economies in the world.” The report acknowledged the “Blue Tech” cluster — or maritime technology — as a key ingredient and noted how entwined traditional industry-based maritime activities are with new technology and the importance of this integration in serving the U.S. Navy.

The maritime industry’s impact on San Diego is undeniable. It is responsible for $14 billion in revenue, supports 46,000 employees and has projected growth of 6,000 jobs, or 12 percent, by 2020. While the tech sector is playing a key role in the growth and modernization of the industry, the fact remains that San Diego’s maritime economy would not exist without the shipyards.

Three major shipyards — General Dynamics NASSCO, BAE Systems and Continental Maritime of San Diego — operate along San Diego’s port. These shipyards and associated companies support more than 5,000 jobs with average annual salaries of $50,000.

The importance of the shipyards’ work extends beyond their employees. They are responsible for 95 percent of the U.S. Navy’s shipbuilding and repair needs. In 2010-2011, the shipyards supported 81 Barrio Logan businesses with $145 million in contracts. These expenditures within the local community supported 740 jobs in Barrio Logan and another 700 jobs countywide.

The shipyards also are responsible, contributing members of the region. Operators have modernized their businesses to comply with state and regional air quality goals, recycle thousands of pounds of paper and plastic, divert hundreds of tons of recyclable material from landfills, and utilize systems to remove trace metals from water. They also have taken an active role in helping identify alternatives for the Bayshore Bikeway, a 21-mile regional bike facility that would provide a safe and enjoyable ride for families and workers.